Innovation

The European share of large tech start-ups is below what is required to remain competitive with China and the US. Investment in R&D by the EU is below the OECD average and now lags behind major competitors, including China. The European share of venture capital deals and capital invested is falling, just as Asia has emerged as a major centre for high-value investment.

The digital single market is not yet supporting European start-ups so they can compete at scale with other major economies. More venture capital is required to allow companies to grow. More investment in R&D is now critically important, particularly as competition is increasingly driven by the development of new technologies.